Low tax rates in most countries have made sugary drinks and alcoholic beverages cheaper, fueling obesity, diabetes, heart disease, cancers, and injuries, especially among children, the World Health Organization (WHO) reported on Tuesday.
WHO called on governments to significantly strengthen "health taxes" on sugary drinks and alcoholic beverages for promoting health and preventing disease.
"By increasing taxes on products like tobacco, sugary drinks, and alcohol, governments can reduce harmful consumption and unlock funds for vital health services," said WHO Director-General Tedros Adhanom Ghebreyesus.
According to the WHO, at least 116 countries tax sugary drinks, including just sodas. However, other high-sugar products, such as 100% fruit juices, sweetened milk drinks, and ready-to-drink coffees and teas, escape taxation.
A separate WHO report also shows that at least 167 countries levy taxes on alcoholic beverages, while 12 ban alcohol entirely. Since 2022, despite the taken actions, alcohol has become more affordable or remained unchanged in price in most countries, as taxes fail to keep pace with inflation and income growth. Meanwhile, wine remains untaxed in at least 25 countries, mostly in Europe, despite clear health risks.
The WHO reported that tax shares on alcohol remain low, with global median excise shares of 14% for beer and 22.5% for spirits. Taxes on sugary drinks also remain low, with the median tax accounting for only about 2% of the price of a typical sugary soda and often applying only to a subset of beverages.
"Few countries adjust taxes for inflation, allowing health-harming products to become steadily more affordable," said the report.
